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Toronto existing home prices up 20 per cent

Existing home sales in the Toronto area soared to 8,476 in October, up 64 per cent from the same month last year.

The average price for a home in October was up 20 per cent to $423,559, the highest on record, according to figures released by the Toronto Real Estate Board today.

"After a short dip in the winter, the average home price has rebounded because sales have been high relative to listings," says Jason Mercer, TREB's senior manager of market analysis.

Active listings were down significantly by 46 per cent in October.

Year to date sales of 74,721 were up 9 per cent compared to the first 10 months of 2008.

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"The highest rate of sales growth in October was experienced for properties selling for over $750,000," said TREB president Tom Lebour. "In contrast, luxury home sales declined at an above average rate last year."

According to a ReMax Ontario Atlantic Canada study released Tuesday, the luxury market is making a comeback with sales in the Toronto area just slightly above last year's levels.

Analysts warn however that the headline grabbing record sales numbers should be put in context. Last September was the beginning of the financial crisis that froze consumer confidence.

Home sales dropped sharply for six months after. November and December year over year comparisons are also expected to be in sharp contrast to 2008 figures.

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